Oil and Natural Gas Corporation (ONGC), the country’s largest petroleum explorer, expects oil and gas production to decline in a range between 3 per cent and 4 per cent in the current financial year ending March 2020, a company executive told analysts post the firm’s third quarter results announcement last week.
The company’s share price tanked to a 52-week low earlier this week and fell below the Rs 100 mark for the first time in 15 years, on the back of waning investor confidence.
“We are pretty close to what we achieved in the last year during the nine month period. Even if this trend was to be taken we will post 3-4 per cent lower production as compared to last year. Once KG 98/2 and a few other projects come on stream that is when uptick will happen,” an ONGC executive said.
The company’s oil production during the first nine months (April-December) of the current financial year declined 4.3 per cent to 17.53 Million Tonne. Similarly, natural gas production during the nine month period dropped 2.1 per cent to 18.85 Billion Cubic Meter (BCM).